Latest news with #TakayaYamaguchi
Yahoo
27-05-2025
- Business
- Yahoo
Exclusive-Japan to consider trimming super-long bond issuance, sources say
By Takaya Yamaguchi TOKYO (Reuters) -Japan will consider trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, two sources told Reuters on Tuesday, as policymakers seek to soothe market concerns over worsening government finances. The Ministry of Finance (MOF) will consider tweaking the composition of its bond programme for the current fiscal year, which could involve cuts to its super-long bond issuance, said the sources who had direct knowledge of the plan. The MOF will make a decision after holding discussions with market participants around mid- to late-June, the sources said. The plan comes amid recent rises in super-long bond yields to record levels, due largely to dwindling demand from traditional buyers like life insurers. The yield on the 30-year Japanese government bond (JGB) fell 12.5 basis points to 2.91% after the report, while the benchmark 10-year yield dropped 5 points to 1.455%. "We've been arguing that something had to give to correct the supply-demand imbalance in long-end JGBs. The market is thinking it will be the MOF," Societe Generale said in a note. If the MOF were to reduce issuance of 20-, 30- or 40-year JGBs, it would likely increase issuance of shorter-dated debt instead, the sources said. As such, the total planned size of JGB issuance for the current fiscal year that ends March 2026 will remain unchanged from 172.3 trillion yen ($1.21 trillion), they said. ($1 = 142.4000 yen)
Yahoo
27-05-2025
- Business
- Yahoo
Exclusive-Japan to consider trimming super-long bond issuance, sources say
By Takaya Yamaguchi TOKYO (Reuters) -Japan will consider trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, two sources told Reuters on Tuesday, as policymakers seek to soothe market concerns over worsening government finances. The Ministry of Finance (MOF) will consider tweaking the composition of its bond programme for the current fiscal year, which could involve cuts to its super-long bond issuance, said the sources who had direct knowledge of the plan. The MOF will make a decision after holding discussions with market participants around mid- to late-June, the sources said. The plan comes amid recent rises in super-long bond yields to record levels, due largely to dwindling demand from traditional buyers like life insurers. The yield on the 30-year Japanese government bond (JGB) fell 12.5 basis points to 2.91% after the report, while the benchmark 10-year yield dropped 5 points to 1.455%. "We've been arguing that something had to give to correct the supply-demand imbalance in long-end JGBs. The market is thinking it will be the MOF," Societe Generale said in a note. If the MOF were to reduce issuance of 20-, 30- or 40-year JGBs, it would likely increase issuance of shorter-dated debt instead, the sources said. As such, the total planned size of JGB issuance for the current fiscal year that ends March 2026 will remain unchanged from 172.3 trillion yen ($1.21 trillion), they said. ($1 = 142.4000 yen) Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Exclusive-Japan Post planning $4 billion sale of shares in Japan Post Bank, sources say
By Miho Uranaka and Takaya Yamaguchi TOKYO (Reuters) - Japan Post Holdings is planning to sell shares in Japan Post Bank which could total some 600 billion yen ($4.02 billion), two sources familiar with the matter said, in the latest loosening of ties between the businesses. The postal giant, whose shareholders include the Japanese government, plans to reduce its stake below 50%, said the two sources and a third person familiar with the plan. That would give Japan Post Bank more freedom to do business as restrictions intended to protect private companies would be relaxed. The sale comes as corporate governance reforms are accelerating in Japan with "parent-child" listings, where companies have a listed subsidiary, being scrutinised and companies under pressure to increase free-float share ratios. The sale could be decided as soon as this week, the sources said. Japan Post Bank is also planning to launch a share buyback, two of the sources said. The sources declined to be named as the information is not public. Shares in Japan Post Bank fell 4% following the Reuters report before trimming losses to close down 1.5%. Japan Post and Japan Post Bank said they are considering various options from a capital policy perspective, but no decisions have been made. Japan Post, Japan Post Bank and Japan Post Insurance listed in 2015 in what was Japan's largest privatisation in about three decades. Japan Post cut its exposure to Japan Post Bank in 2023 and currently owns 61.5%. The postal giant has already reduced its shareholding in Japan Post Insurance to 49.8%. Japan Post Bank's net profit for the nine months to December climbed 17% to 308 billion yen as rising interest rates boosted profits. ($1 = 149.4300 yen)
